Even if European countries have retracted Corona measures, the pandemic still has a major impact on energy policies and markets. PV beats wind in joint tenders and policy makers have agreed on changes for PV and wind. At the long end prices, stabilised or even went up again in May 2020.
While the world looks in surprise at negative prices on the oil markets, these have long been familiar to participants on the electricity market. However, the market results on the electricity exchanges are also anything but normal now: For the first time ever, the price for a baseload delivery falls below zero on a working day.
The results of the tenders for renewable energies were almost predictable. Minimum distances for wind parks and the 52-GW cap for PV remain contentious issues. The figures for the storage sector for 2019 are consistently positive. The effects of the global spread of the new corona virus are particularly noticeable in the energy sector on the price side.
In the second part of this blog series, we elaborate on the links between the coronavirus pandemic and energy markets. Specifically, we examine the possible medium-term consequences for the front years 2021 to 2025 on Europe’s electricity markets due to the coronavirus and the turbulences on the oil market. We conducted the analysis using the fundamental model Power2Sim.
Coal-fired power generation is sinking, wind is disappointing in tenders for renewable energies and PV is booming, and the National Hydrogen Strategy is making progress – these were the big issues in February.
The coal phase-out has finally been stipulated in a law, even if less ambitious than the coal commission had proposed. The results of the last solar auction in December 2019 have been published and German emissions fell by about 50 million tonnes of CO2 last year. In the first month of 2020, prices at the long end continued to fall.